Richard Born Revealed as Partner in L&L Infinite’s $245M Buy of 600 Third Avenue

Richard Born Revealed as Partner in L&L Infinite’s $245M Buy of 600 Third Avenue

Hotel investor Richard Born has emerged as the previously unnamed institutional partner behind the $245 million acquisition of 600 Third Avenue, a 42-story office tower in Manhattan’s Midtown East corridor, according to sources familiar with the transaction.

Born joined L&L Infinite — the joint venture launched by former Silverstein Properties chief executive Marty Burger and L&L Holding CEO David Levinson — in the purchase from BlackRock. Born now holds roughly 25 percent of the property, with each member of the investor group owning an approximately equal share, a source said.

Affiliates of Richard Mack’s Mack Real Estate Group, along with BLDG and BD Blakely, also participated in the deal. Bloomberg first reported the sale, identifying only an unnamed institutional investor alongside L&L Infinite.

The transaction ends BlackRock’s long hold on the asset. The asset manager had owned a 99.5 percent stake in the building for close to two decades, with L&L Holding holding the remaining 0.5 percent. A source said BlackRock’s exit was driven by capital recycling.

Financing for the acquisition came via a $185 million loan from Bain Capital secured at closing. The tower, built in 1970 between East 39th and East 40th streets, underwent a renovation in 2015.

Newmark brokered the sale, with a team that included Adam Spies, Adam Doneger, Josh King, Marcella Fasulo, Avery Silverstein and Doug Harmon.

The building was 93 percent leased at the time of the deal. Anchor tenants include L-3 Communications, which occupies nearly 59,000 square feet, along with law firms Polsinelli PC and others.

The sale comes amid continued activity in New York’s office investment market, where institutional capital has been selectively re-engaging with Midtown assets. Publicly traded office peers have drawn investor attention as well; SL Green Realty (SLG) traded at $52.94 in recent action, up 1.65 percent from a prior close of $52.08, valuing the company at roughly $3.75 billion.

What to watch

• Any announcement from L&L Infinite on leasing plans or capital improvements for 600 Third Avenue following the renovation completed in 2015.
• Details on the Bain Capital acquisition loan terms as they surface in future filings or reporting.
• Additional Midtown East office trades involving institutional buyers, which would signal whether momentum in the submarket continues.

Source: original release